Weichai Power sets up Singapore subsidiary
Chinese diesel engine maker Weichai Power will launch a wholly owned subsidiary in Singapore on Thursday.
The company will have registration capital of S$29m ($14m), which it plans eventually to expand to S$100m.
Weichai-Baudouin (S) Pte will employ 100 staff within two to three years.
In 2009, the Hong Kong-and Shenzhen-listed Weichai bought Moteurs Baudouin, a French diesel engine and gearbox manufacturer.
?Southeast Asia is the most active area in the world economy and it will hold a strategic position in the future,? said Weichai Power chairman and chief executive officer Tan Xu Guang, adding that Singapore is the most vigorous location within the Association of South East Asian Nations.
Mr Tan said that the Singapore arm would serve as a sales service and distribution centre for the company"s products but in the future it would develop and assemble products in the country.
On January 1, 2010, a free-trade agreement between China and Asean came into effect. Weichai said it planned to grow market share in Southeast Asia to between 20% and 30% within five years, up from current levels of 5%.